Concept And Checking Of Credit Cards

Concept Of Credit Cards
There was a system of asking for credit since long time, but in 1930 there developed a system of plastic card. The system become successful especially after 1950 when banks and financial institutions started to provide loans to the individual customer and guaranteed payment to the business organizations. The notable internationally accepted credit cards are American Express, Visa Card, Master Card etc. Now a days, hospital credit card, restaurant credit card, telephone, bus etc are also available. One can use this card number to deal with bank account, payment of air bills, transfer money etc.

Debit cards are used for payment, to receive cash to the limit one has deposited. Most common method to use debit card is ATM machines. Business houses accept it to the limit of money one has deposited to the bank. Where as credit card is to get loan from the financial institution. The basis of credit card system is " buy now pay later". Business organizations will accept to the limit the bank will guarantee. The bank provides credit card and cash limit on the basis of customer's financial status, employment, reputation etc. The cards are normal, golden or platinum. The color of the card symbolizes the dignity of the customer  Similarly, business organizations wishing to deal business in credit card apply for the membership of card from the bank. The bank authorizes the organization to receive to the limit of payment from the card holders. 

The credit card system is very convenient to carry, easy to handle, no worry of lost and theft. It facilitates to travelers a lot.

Checking Of Credit Cards

* Check the name or company of the credit card. Office/ Agency must have valid membership of the card. Do not accept the card with which company has no dealing agreement.

* Check the holders name on the card. Only owner is allowed to use it.

* Check the validity of the credit card. 

* The credit card should be pure. There should not be any alternation, defaced.

* Check the limit customer can use and it should be within your company limit also.

* The card number should not be in card cancellation book.

Meaning Of Travelers Cheque And Points To Be Considered While Accepting It

Meaning Of Travelers Cheque
Travelers cheque is one of the most popular mode of payment used in this modern world. It is a type of cheque produced by banks to the customers upon receiving the payment of amount mentioned on it.The customers signs once in front of the bank authority and second time signs to make payment in front of the cashier. Upon receiving the cheque the cashier checks the signature and re-checks with passport and passport details.Then the cashier notes down all the passport details on the back of the cheque and accept only after satisfying all the details. The receiver submits to the bank to receive the actual payment of the cheque. As travelers cheque involves foreign currency a proper record should be maintain to met the government obligation.

Points To Be Considered While Accepting Travelers Cheque

* Customer should counter sign in front personally. Check the second signature with the first one. If confused, check with passport signature or with any documents.

* Note down passport details such as name of the guest, passport number, nationality, address etc. on the back of the cheque.

* Find out the currency to be exchanged and determine whether the currency is exchangeable as per government banking regulation.

* Collect exact amount. If exact amount is not possible return the balance in local currency.

* Maintain proper office record.

* Maintain proper receipt record. Write down detail cheque number, passport number in the receipt.

Types Of Passports

Generally, passports issued by competent authority are of following types:

1. Normal Passport
Normal passports are issued to citizens proceeding to another country for personal reasons.

2. Aliens Passport
The aliens passports are issued to alien residents. An alien is a person in a country of which he/she is not a citizen, subject or national. An alien may be a non-immigrant or an immigrant depending upon the purpose for which he/she is entering the country.

3. Children's identity cards
These cards are issued to minors instead of passport.

4. Diplomatic Or Consular Passport
Diplomatic passport is issued to diplomatic, consular and other government officials on missions entitling the bearer to diplomatic or consular status under international law and custom.

5. International Red Cross Passport 
This passport is issued by the United Nations.

6. Joint Passport
In special cases, some countries may issue a joint passport for travelling together, like husband and wife or with children. The holder of such passport must travel together.

7. Official Passport
Official passport is issued to government officials or other persons on government missions.